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TMI Blog2016 (6) TMI 818X X X X Extracts X X X X X X X X Extracts X X X X ..... rity confirmed the demand of Rs. 27,09,484/- being Cenvat credit of service tax irregularly availed on outward freight of finished goods during the period May, 2008 to January, 2009. Along with this, the demand of interest was also confirmed besides imposing penalty of Rs. 14,00,000/- under Rule 15(1) of Cenvat Credit Rules, 2004. An amount of Rs. 9,73,999/- along with interest was confirmed for the period February, 2009 to May, 2009 besides imposing penalty of Rs. 5,00,000/-. An amount of Rs. 17,89,955/- was confirmed along with interest thereon for the period October, 2010 to March, 2010 besides imposing penalty of Rs. 8,00,000/-. Being aggrieved by these orders, the appellants filed appeal before the Commissioner (Appeals). The Commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the factory. The learned counsel submitted that this option was never exercised and all the invoices would show that sale was on FOR basis. That authorities below erred in holding that as per para 12 when payment is made against supply orders, the ownership in goods is transferred to the distributor on making payment. He submitted that para 12 of agreement only lays down the mode of payment and has nothing to do with the freight charges to be paid. To fortify his arguments, the learned counsel relied upon judgments laid in the following cases: 1) Commissioner of Cus & CE, Hyderabad-III Vs Grey Gold Cements Ltd. 2014(34) STR 809(AP) 2) CCE&ST, LTU, Bangalore Vs ABB Ltd 2011(23) STR 97(Kar) 3) Final Order No.52989-52991/2015, dated 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d place of the Distributor. Receipt of beverages shall be acknowledged by the authorised representative of the Distributor. The price charged by the Company in their invoice shall be inclusive of freight. The risk of any loss or damage to the products during transportation shall be the responsibility of the Company. If Distributor wishes to purchase beverages from the factory/depot of the Company by using their own vehicles, same shall be permitted and the risk of loss or damage shall pass on to the Distributor at the factory/depot of the Company. Para 12: It is clearly agreed between the Distributor and the Company that the sale and delivery of Beverages by the Company to the Distributor shall always be on payment by cash/demand draft/C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bility continues till goods are handed over to the customer. Para 12 is nothing but a clause explaining the time and mode of payment to be made. The contention of Revenue that para 12 would show that ownership of goods get transferred to customer immediately on making payment is without basis. Again, the last part of para 11 is only an option given to customer for transporting the goods in their vehicles. But not even a single instance of exercising this option is proved by Revenue. Thus as per records, the appellants have succeeded in establishing that the sale is on FOR basis and place of removal is the customer's premises. On such score, the Board Circular is binding on the department and the denial of credit is unjusti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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